Bulls n Bears Daily Market Commentary : 14 November 2023

Wed Nov 15 07:21:00 CAT 2023

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Bulls n Bears Daily Market Commentary : 14 November 2023

 <https://www.dulys.co.zw/> ZSE commentary

The market retreated with ZSE All Share Index losing 492.43 points to close
the session at 172,243.41 points. Trading in the negative: SEED CO LIMITED
shed $80.8180 to close at $726.6953, DELTA CORPORATION LIMITED retreated by
$66.6737 to close at $3,234.9246 and OK ZIMBABWE LIMITED eased $24.3048 to
$165.018. ECOCASH HOLDINGS ZIMBABWE LIMITED was $2.1874 down at $112.9497
and PROPLASTICS LIMITED lost $1.7686 to $610.1814.

Trading in the positive: FIRST MUTUAL HOLDINGS LIMITED went up by $63.7500
to $850.0000, ECONET WIRELESS ZIMBABWE LIMITED gained $30.5319 to close at

$630.9721 and FIDELITY LIFE ASSURANCE LIMITED increased by $27.0000 to
$207.0000. HIPPO VALLEY ESTATES LIMITED was $1.7628 up at $2,001.7628 and
ZIMRE HOLDINGS LIMITED  added $0.4138 to $130.0000.

EXCHANGE TRADED FUNDS 

MORGAN & CO MADE IN ZIMBABWE , MORGAN & CO MULTISECTOR EXCHANGE TRADED FUND
, DATVEST MODIFIED CONSUMER STAPLES EXCHANGE TRADED FUNDS and CASS SADDLE
AGRICULTURE EXCHANGE TRADED FUND were unchanged at $7.2000, $310.0000,
$9.0000 and 7.500 respectively. OLD MUTUAL TOP 10 ETF was $0.5500 up at
$35.0000.

REAL ESTATE INVESTMENT TRUST 

TIGERE REAL ESTATE INVESTMENT TRUST recovered $1.786 to close at
$254.8886.-zse

Global Currencies & Equity Markets

South Africa

South African rand soars over 2% after U.S. inflation data

(Reuters) - The South African rand leapt over 2% on Tuesday as the dollar
slumped after softer-than-expected U.S. consumer inflation data boosted
expectations that the Federal Reserve might be done with interest rate
hikes.

At 1500 GMT the rand traded at 18.3600 against the dollar , about 2%
stronger than its previous close.

The dollar last traded about 1.1% weaker against a basket of global
currencies.

U.S. consumer prices were unchanged in October amid lower gasoline prices,
and underlying inflation showed signs of slowing, supporting views that the
Fed was probably done raising interest rates.

-

"A softer inflationary impulse in the US... all but ends any remaining bets
that the US Federal Reserve might still hike interest rates further in the
current cycle," Danny Greeff, co-head of Africa at ETM Analytics, told
Reuters.

If softer inflation is sustained, "it will also support the case for the Fed
to take its feet of the brakes and gradually turn more growth-sensitive
through the months ahead," he added.

-

Like other risk-sensitive currencies, the rand often takes cues from global
drivers such as U.S. monetary policy as well as local data points.

Locally, South Africa's unemployment rate fell to 31.9% in the third quarter
of this year from 32.6% in the second quarter, statistics agency data showed
on Tuesday (ZAUEMP=ECI), (ZAUNR=ECI).

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI)
closed over 2.5% stronger.

-

South Africa's benchmark 2030 government bond was stronger, with the yield
down 18.5 basis point at 10.230%.

Nigeria

Old Naira Notes Remain Legal Tender Indefinitely - CBN

(THEWILL) - The Central Bank of Nigeria (CBN), on Tuesday, said it has
extended the legal tender status deadline of the old design of N200, N500
and N1,000 denominations.

In a statement signed by its Director, Corporate Communication, Dr Isa
AbdulMumin, the apex bank emphasised that all banknotes it issued issued in
accordance with Section 20(5) of the CBN Act 2007, will continue to remain
legal tender, even beyond the initial December 31, 2023 deadline.

According to the Apex Bank, it is not only in line with international best
practices, it would also forestall a repeat of earlier experiences.

Glo

"Please recall that the Central Bank of Nigeria introduced the redesign of
N200, N500 and N1,000 denominations in October 2022, and certain deadlines
were set for the old design of these denominations to cease as legal
tenders.

"Without prejudice, the Central Bank of Nigeria wishes to inform the general
public of its desire to extend the legal tender status deadline of the old
design of N200, N500 and N1,000 denominations, ad infinitum.

"The Central Bank of Nigeria is working with the relevant authorities to
vacate the subsisting court ruling on the same subject. Accordingly, all CBN
branches across the country will continue to issue and accept all
denominations of Nigerian banknotes, old and redesigned, to and from deposit
money banks (DMBs)", the statement read.

The regulator enjoined Nigerians to continue to accept all Naira banknotes
(old or redesigned) for day-to-day transactions and "handle these banknotes
with utmost care, to safeguard and protect the lifecycle of the banknotes.

"Also, the general public is encouraged to embrace alternative modes of
payment, e-channels, for day-to-day transactions."

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar sinks after data shows US inflation cooling

(Reuters) - The dollar fell more than 1% against major currencies on Tuesday
after U.S. consumer price data showed the pace of inflation moderating
further in October, increasing the odds that the Federal Reserve is done
hiking interest rates.

U.S. consumer prices were unchanged last month amid lower gasoline prices,
the Labor Department's Bureau of Labor Statistics (BLS) said, following a
0.4% rise in September.

In the 12 months through October, the consumer price index (CPI) climbed
3.2% after rising 3.7% in September, BLS said.

The dollar immediately tumbled on the report's release and Treasury yields
plunged. The benchmark 10-year fell below 4.5%, removing a major support to
the dollar's strength this year.

"We think that the dollar will continue to weaken a bit throughout the end
of the year, maybe even early into January," said John Doyle, head of
trading and dealing at Monex USA in Washington.

The dollar index, a measure of the U.S. currency against six peers, slid
1.55% to 103.980, on track to its biggest single-day percentage decline
since Nov. 11, 2022.

The U.S. currency also was poised for its largest declines since November
2022 against the euro and British pound.

The dollar slipped 1.73% against the euro to $1.089, 1.82% against the
British pound to $1.250 and 1.52% against the Swiss franc to 0.888.

The dollar also fell more than 1% versus the Norwegian krone and more than
2% against the Australian and New Zealand dollars.

The data was welcome news in the market, where many analysts have been
predicting the Fed's interest rate hiking has peaked.

"You can say goodbye to the rate-hiking era," said Brian Jacobsen, chief
economist at Annex Wealth Management in Menomonee Falls, Wisconsin.

But Doyle, among others, cautioned the end of rate hikes did not mean rate
cuts would be coming as soon as markets were predicting due to a tight
American labor market and resilient U.S. economy that has kept consumers
spending.

"I don't think that they're going to be itching to cut rates necessarily,"
he said, referring to Fed policymakers. "The Fed's going to feel pretty
comfortable to ride it out longer."

Fed Chair Jerome Powell and other policymakers in recent days have tried to
push back against expectations that the U.S. central bank was done with its
aggressive rate-hike cycle.

Futures show more than a 68% probability that the Fed cuts its overnight
lending rate by 25 basis points or more by next May, according to the CME's
FedWatch tool.

YEN STILL ON INTERVENTION WATCH

The Japanese yen, meanwhile, also gained against the dollar, but less than
its peers. The yen strengthened 0.97% to 150.23 per dollar when earlier
coming under pressure after it briefly jumped against the dollar on Monday -
having touched a one-year low. The move was attributed to a flurry of
trading in options rather than any intervention from Japanese authorities.

DTCC data from LSEG's Eikon platform shows yen options worth a notional $3.5
billion with strike prices between 151.90 and 152 are due to expire between
Wednesday and Friday.

Another $2.2 billion notional worth of options with strikes between 151.90
and 152 will expire between Nov. 20 and the end of the month.

Japanese authorities in September and October last year intervened in the
currency market to boost the yen for the first time since 1998.

"Our base case is that we could have intervention if we break the 152 level
for dollar/yen," said Yusuke Miyairi, an FX strategist at Nomura.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold advances as yields, dollar slip after US inflation data

(Reuters) - Gold prices gained 1% on Tuesday as the dollar and Treasury
yields retreated after softer-than-expected U.S. consumer inflation data
fuelled bets that the Federal Reserve may be done hiking interest rates.

Spot gold was up 0.9% at $1,962.44 per ounce by 2:30 p.m. ET (1930 GMT), set
for its best session since Oct. 27. U.S. gold futures settled 0.8% higher at
$1,966.50.

U.S. consumer prices were unchanged in October and underlying inflation
showed signs of slowing. In the 12 months through October, the CPI climbed
3.2% after rising 3.7% in September.

-

The report "looked pretty good", said Chicago Fed President Austan Goolsbee,
as traders bet that cooling inflation will allow the U.S. central bank to
forgo any more interest rate hikes and start cutting rates by May.

"CPI data came in significantly weaker than expected, which is quite
supportive for precious metals. We are expecting a significant deterioration
in the data over the course of the fourth quarter, which should weaken
dollar and support gold," said Daniel Ghali, commodity strategist at TD
Securities.

-

"Over the next six months, we're looking at gold prices to rally towards
$2,100 per ounce."

Boosting bullion's appeal, the dollar index (.DXY) fell 1.4%, its biggest
daily decline in one year, while benchmark 10-year Treasury yields eyed
their worst day in eight months after the inflation data.

Investors will also keep a tab on the U.S. producer price index data due on
Wednesday.

Spot silver rose 3.4% to $23.07 per ounce in its best session in a month.

-

Commerzbank lowered its price forecast for silver at the end of 2024 to $29
per ounce from $30.

But it expects silver to noticeably outperform gold, on the back of a
positive outlook for industrial demand and ongoing transformation of the
economy towards climate neutrality, in which silver plays an important role.

Platinum gained 2.7% to $887.52 and palladium climbed 3.8% to $1,019.06..

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

Bulls n Bears 

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